Temporary access road going rate

Anybody dealing with TARs right now. I was currently offered 2.00$ /Linear foot for a temporary access road. The company is ET Rover. Anybody dealt on any access roads with them yet? if so what offers?

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Permalink Reply by Barry D on January 15, 2016 at 2:05am

How temporary?

Width and length?

Reclamation?

Liability?

Is the two dollars a one time payment?

Did the company provide an agreement?

Permalink Reply by brandon on January 15, 2016 at 3:40am

This TAR is 20' wide and going a distance of 1,142' Reclamation is to put the road to as found condition. The TAR that they want is for an existing road on my farm. Some timber will be knocked down but not much.  I have no Liability for injuries etc. on the agreement. $2.00 one time payment. TAR agreement to be void  no longer than 24 months after the completion of the pipeline or earlier.

Permalink Reply by Kyle Nuttall on January 18, 2016 at 12:12pm

Sounds like a pretty decent agreement.  Was $2 their first offer?  When you say you have no liabilities, does that mean you got an Indemnification clause?

Permalink Reply by brandon on January 24, 2016 at 11:04am

Kyle, This was their first offer.  The lease states that I wont be held liable for injuries and damages to the company.  Not sure if that's considered a full Indemnification clause. I made a counter offer of 3$/ a foot and they have not contacted me back.  I did not feel that this was an outrageous demand on my part and where this TAR is located is extremely convenient for them.  The land person admitted to me that it was a highly desirable location but I guess we will see. 

Permalink Reply by John Graham on January 27, 2016 at 8:51am

I would think you could counter with at least a 50% higher number then? But I would demand that they use the black mat under the stone, then after reclaiming, leave you the limestone in a nice pile.

Permalink Reply by Kyle Nuttall on January 29, 2016 at 10:32am

I have a client that was able to get a one year agreement that automatically renews if TARS wants it, with the same bonus payment due upon renewal.  See if you can get that instead of a two year agreement.  The price seems like it's in the ballpark with what my client got, but always, always ask for more.

Permalink Reply by william Allen. Ladd on January 25, 2016 at 6:36am

A pipeline representitive and I had a little discussion about this, Their pipeline needs to cross a creek and up a very steep bank  and then leveling off a short distance and then another steep wooded section and finally to level off again. To bring machinery and material, some sort of access needs to be put into place,  maybe a bridge.  Or maybe they could use my driveway and then place gravel back to their pipeline row, parallel to the creek.

I was given a map showing how this access road might be installed. I would have the option to leave the graveled area in place after pipeline  was  finished or they would remove it.  Depending on the exact location of this access road will determine my decision to have gravel in place or not.

The access road will be a completely different deal then the pipeline lease itself, so I was told.  Well we will see what develops.

Permalink Reply by Kyle Nuttall on January 29, 2016 at 10:33am

Sounds like things are moving along nicely for you.  Just make sure that they have the actual location and all the details pinned down before you sign anything.  If it's not in writing, it didn't happen.

Permalink Reply by bootmud on February 4, 2016 at 5:22pm

Brandon, Were you able to get more than the 2.00$ per foot ?

Permalink Reply by brandon on February 5, 2016 at 3:51am

no the company backed out at 3$

Permalink Reply by Kyle Nuttall on February 6, 2016 at 11:27am

Do they have another way of gaining access to the pipeline?

Permalink Reply by brandon on February 9, 2016 at 8:21am

yes they do but is a considerable distance from where it crosses my farm.  The landman told me that they would stick to the pipeline for their access, but it will be extremely difficult to do that with the physical steepness of the row.  I understand that they do amazing things when it comes to installing the lines but in all reality it would be far more economical to lease the access road from me.  They also told me that if the contractor decided they needed it they would take it for the 3/ft. So we will see how it goes

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